State Street SPDR EURO STOXX 50 ETF (FEZ) Covered Calls

The SPDR EURO STOXX 50 ETF seeks to provide investment results that correspond to the performance of the EURO STOXX 50 Index. The fund offers exposure to 50 of the largest and most liquid stocks in the Eurozone across multiple industries. By focusing on the "blue-chip" market leaders of the region, FEZ provides a streamlined vehicle for investors seeking to capture the core growth and stability of the European economy with high liquidity and transparency.

You can sell covered calls on State Street SPDR EURO STOXX 50 ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for FEZ (prices last updated Wed 4:16 PM ET):

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The SPDR EURO STOXX 50 ETF (FEZ) is a premier international fund designed to provide focused exposure to the 50 largest "blue-chip" companies in the Eurozone. Unlike broader regional funds, FEZ tracks the EURO STOXX 50 Index, which concentrates capital into the region’s most significant market leaders. In early 2026, the fund has emerged as a key beneficiary of the Eurozone’s stabilizing economic outlook, supported by a normalization of energy prices and a resurgence in German fiscal spending, which has bolstered the industrial and banking sectors across the continent.

The portfolio is intentionally lean, holding exactly 50 of the most influential securities in the region. As of March 2026, the fund is heavily anchored by the semiconductor giant ASML Holding NV (approx. 11.0%), followed by industrial titan Siemens (4.1%), and the enterprise software leader SAP SE (4.0%). Sectorally, the fund is dominated by Financials (25.1%) and Industrials (21.5%), reflecting the core backbone of European commerce. With an expense ratio of 0.29%, FEZ is significantly more cost-effective than its immediate peer, the iShares MSCI Eurozone ETF (EZU), and remains the liquid standard for institutional and retail traders alike.

Competitive Landscape

FEZ occupies a unique position as the "large-cap focus" tool for European equities. Its most frequent rival is the iShares MSCI Eurozone ETF (EZU), which is much broader with over 220 holdings but carries a higher expense ratio of 0.50%. For investors seeking wider European exposure including non-Euro nations like the UK and Switzerland, the Vanguard FTSE Europe ETF (VGK) is the primary alternative. Other notable peers include the iShares Core MSCI Europe ETF and the iShares Europe ETF.

Because of its immense liquidity and the high-profile nature of its 50 holdings, FEZ maintains one of the most robust options markets in the international space. It is a favorite for covered call writers who want to generate income from "Growth at a Reasonable Price" (GARP) stocks, particularly during periods of geopolitical shift or when European earnings growth—currently projected at 10% for 2026—begins to outpace the U.S. market.

Strategic Outlook and Innovation

The strategic future of FEZ in 2026 is tied to the maturation of the European "Strategic Autonomy" initiative. The fund has seen increased weightings in defense-adjacent industrial firms like Safran and Siemens Energy, reflecting a pan-European shift toward infrastructure and security spending. Additionally, the fund’s core tech holdings (ASML, SAP) are central to Europe’s efforts to narrow the AI investment gap, with major capital expenditure plans rollout through the 2026-2027 cycle.

Looking ahead, FEZ is positioned to benefit from a "valuation catch-up" trade. With a healthy trailing dividend yield of 2.73% and a P/E ratio that remains at a significant discount to the S&P 500, the fund provides a compelling value proposition. Whether used as a tactical tool to express a bullish view on European manufacturing or as a strategic core for international diversification, FEZ remains the "standard-bearer" for high-conviction Eurozone equity exposure in the mid-2020s.

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